Legal & General’s UK Property Unit Trust has acquired an office development in Leeds for £14.4 million.

The fund confirmed today that it has acquired One Whitehall Quay from Britannia Invest for the aforementioned purchase price representing a net initial yield of 7.88 per cent.

Mercer Consulting and MWB Business Exchange Centres are the current tenants of the 51,182 square ft building on an unexpired lease term of 6.25 years.

The passing rent is £1,197,500 per year which equates to £21 per square ft, which the fund management house claims reflects a 20 per cent discount to prime rents in Leeds and, therefore, offers good scope for future growth.

Matt Jarvis, manager of the L&G UK Property Unit Trust, said the acquisition was a good deal for investors.

He explained, ‘Acquired at an attractive yield, One Whitehall Quay represents an excellent opportunity for value add asset management initiatives.

‘We intend to reposition the property over the medium term with a view to creating one of the key Grade A offices in Leeds city centre.

‘This transaction is in line with the Fund's long term preference for town centre office properties and we continue to seek similar opportunities.’

According to statistics from Morningstar, the fund added £40 for every £1,000 invested over the five years until the end of April, making it a top quartile performer in the IMA Property sector.